Tue, Jun 21, 2011 - 12:24am
Thanks again TF for making this possible!
Rather than make specific recommendations, I think it is important to step back and offer a few observations and recommendations to new or soon to be PM junior investors.
1. Most of the juniors are Canadian or Australian listed companies and trade primarily on the exchanges in these countries.
I just stated the obvious, but what this means to you is that even though many of the companies are traded on the OTC in the US, the level of liquidity is usually much lower than the exchange in the home country. The spreads can be horrible and you may not be able to enter or exit a position without losing/paying plenty of $.
2. The solution of course is to trade on the Canadian or Australian exchanges.
This might entail changing brokers. I like Interactive Brokers (IB). The commissions are cheap and they have been very responsive to my questions. I am sure other readers can offer their recommendations for brokers.
3. One benefit in trading on the Canadian or Australian exchanges is the assets are denominated in Canadian or Australian dollars.
I feel that it is important to have most of my highly liquid holdings in other, stronger currencies. This is not to say they will not depreciate over time, but relative to the US $, they should have a slower rate of decent. As you may have noticed, both the Australian and Canadian dollars have done quite well this past year, appreciating against the US $, an added bonus on my investment returns.
4. Purchasing Australian or Canadian dollars for your account avoids paying interest to the brokerage firm.
Other readers, please chime in with your thoughts and recommendations. Thanks.
Edited by: SealRock on Nov 8, 2014 - 5:20am